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1) How much do you require to invest today in order to include $247 at end of 17 years if you are certain to earn the interest at the rate of 7%, if it is given that interest is compounded quarterly? What must you be keen to pay in order to receive $549 annually everlastingly, if you need 5% per year on the investment?

2) Determine future value of quarterly payments of $518 for 14 years at 4 percent? Determine the number of years which will take to raise your money from $4,916 to $6,290 if you can earn the interest of 19% compounded quarterly?

3) Assume that after you graduate you make a decision that finance was best thing that has ever took place in your lives so your class comes to a decision to award a chair in Finance Department. You wish your donation to give $50,000 annually to anything professor holds chair. You wish the chair to persist indefinitely. If interest rates are 10%, compute the money that your class require to raise today for this worthy project?

i) $45,454.5
ii) $50,000
iii) $500,000
iv) Can’t be find out from the given information
v) None of the given answers is right.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914088

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